How does EurepGAP fit into the McDonald’s Quality Standard? · management and communication •...

Integrated Farm Assurance Conference, Amsterdam 2004

Handout No 11, Reinhard Käppel

McDonald‘s Europe, Germany of 15

EUREPGAP

How does EurepGAP fit into the McDonald’s Quality

Standard?

Dr. Reinhard KaeppelHead of Quality Assurance - McDonald’s Europe

Amsterdam, 9 November 2004

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McDonald’s and Agriculture• How do we fit together?• beginning and end of chain• a long way between the green fields &

the Golden Arches• difficult for both to always keep the

needs of the other in mind




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McDonald’s ...

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McDonald’s• Global leader for Quick Service

Restaurants• very strong BRAND• directly linked to the consumer• serving 47 million customers every day

world wide, over 10 million in Europe• 1.5 million employees system wide




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• Sales – Franchised and affiliated sales $ 33.137– Company-operated sales $ 12.795– Total system wide sales $ 45.932

• Restaurants – USA 13.609– Canada 1.339– Europe 6.186 – Japan, Asia Pacific, Middle East 7.475– Latin America 1.578– Partner Brands (Boston Market, Chipotle) 942– Total system wide restaurants 31.129

2003 results

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2003 volumes Europe

• Large quantities of agricultural products used last year (ca.):

• 150.000 tons beef• 100.000 tons chicken• 120.000 tons wheat• 1.000.000 tons potatoes• 80.000 tons produce




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Agriculture• Very decentralised, millions of individual

farmers• going through many changes:

– technical: high yield production methods, new growing areas for same crop, many more new varieties, GMOs, etc.

– political, social and financial: subsidies, WTO, CAP, etc.

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Agriculture• Social changes re income and image• many food scandals were related to

agriculture and feed• agricultural practices in focus of media

interest, see animal welfare• paradigm shift in process:

– from looking at the next in the chain to having the final consumer in mind




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McDonald’s and Agriculture• Common link is the final customer -

the BOSS !• everybody along the chain must have

this focus• we have a large base of farmers

producing our raw materials (over 500.000 just for beef)

• must follow common quality systems

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McDonald’s Quality Standard• How can agricultural quality systems be part

of the Quality Standard of a restaurant chain?

• our founder gave us the direction: “Quality, Service, Cleanliness & Value”

• evolution over the years, going up the chain• working with our direct suppliers as partners




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McDonald’s Quality Standard• Ensuring that our customers

consistently get safe and high quality food, in compliance with legislation

• proactive quality and food safety systems along the complete chain

• applying principles of risk assessment, management and communication

• validating system and verifying function

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McDonald’s Quality Standard• Besides the basics, today’s consumers

want more:• full transparency of what is in the

products, and full traceability of products history

• this includes to make sure that origin and production are aligned with high ethical and environmental standards




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McDonald’s Quality Standard• Logically, the standard was expanded

to include agricultural production• started our McDonald’s Agricultural

Assurance Programme (MAAP) in 2001• original goals were

– to improve agricultural production of raw materials used in our products,

– to fully include food safety & quality systems right from the beginning

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MAAP• MAAP is more than a quality system for

agricultural production, or about having more influence on primary SC

• it gives us the opportunity to support sustainable agriculture

• to ensure ethically acceptable growing conditions for animals and crops

• to demonstrate social responsibility




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MAAP

• MAAP is our internal reference• screening existing quality schemes for

coverage of our requirements• increasing % of raw materials from

compatible schemes over time• working with scheme owners to

increase common areas with MAAP

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Standards for Agriculture• Standards must be clear and transparent,

for users to follow and to communicate, in order to build customer confidence

• verification through audits by credible third party is required

• long term view must be applied, with opportunity for training and improvement

• all above covered with IFA standard




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EurepGAP & MAAP• IFA is very compatible with our internal

MAAP standards• therefore, we welcome the Integrated

Farm Assurance Standard for livestock and combinable crops

• we are supporting to make IFA the reference standard for benchmarking

• differences with existing national schemes need to be made transparent

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EurepGAP & MAAP• MAAP standards are in 3 levels

– 1. legal requirement– 2. required McDonald’s target– 3. future requirements

• when screening other schemes, we compare with 1 + 2

• similarly structured like IFA requirements




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EurepGAP & MAAP• EurepGAP and IFA belong to the

preferred schemes/standards for our raw material sources

• as a result, we see more supplies coming from EurepGAP approved sources

• need multilateral recognition of standards and alignment of interpretation what compliance means

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EurepGAP & MAAP• EurepGAP guidelines for accreditation

are role model• many certification bodies accredited for

IFA standard• will include important module on feed• future goals are included in the IFA

standard, the objective of supporting a sustainable agriculture must be visible




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Changes at McDonald’s• Our customers want more choice• more new products needed, however,

there needs to be a strategy• want to remain best in class in the

hamburger category, but need to open up … with a new concept:

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More choice - Salads Plus

TASTE

CHOICE

VITALITY




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Why more choice is needed • Improve perception about nutritional

quality of McDonald’s food• address the growing ‘fat’ & ‘obesity’

issues’ - doing ‘the right thing’• give people ‘permission’ to come to us

more often• strengthen leadership position

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More choice




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TO More choice PLUS

Burger & Fries

InternationalFast Food

Balanced Food offer

Eat SmartBe Active

20002000 TodayTodayPastPast

+ +

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More choice ...… Consequences for us:

• bigger variety of products, challenges to all parts of the supply chain, from logistics to agricultural production

• more than ever we need to rely on functioning systems and a safe agriculture

• these are more arguments for IFA!




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Future wishes• To have less audits per producing unit• harmonising, combining audits• promote IFA as strong audit standard,

as model for pre-farm gate area• covering general objectives of social

accountability• recommendations for sustainable

agriculture changing into requirements

PrimarySupplyChain

Processing

FinalCustomer

M.A.A.P.

Existing Quality Systems- Specifications- Standards- HACCP- ATCQ

EUREPGAPIFA




EUREPGAP

Thanks EurepGAP&

Thanks for your attention!

How does EurepGAP fit into the McDonald’s Quality Standard? · management and communication •...

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